- AUD/USD bulls attack 0.6980 following the latest bounce off 0.6961.
- Market sentiment remains mixed with equities on the positive side amid better earnings reports, virus woes, Sino-American tussle prevail.
- Second-tier Aussie data can offer immediate direction, risk catalysts to keep the driver’s seat.
AUD/USD remains on the front foot around 0.6980 at the start of Wednesday’s Asian session. The pair snapped the previous three-day losing streak the previous day after reversing from 0.6920. Though, 0.7000 threshold remains as the key resistance for the bulls to clear.
While the recent announcement from Moderna offers the latest push to the Aussie pair, upbeat performance by Wall Street benefited the quote before that. It’s worth mentioning that the risk-on mood has nothing to do with the US-China tension with fewer positives from the coronavirus (COVID-19) front.
Bulls track Wall Street gains…
The returns of the equity buyers renewed optimism in the global markets. Upbeat earnings from the key banks like JP Morgan and Citi managed to dim the previous economic fears. It should, however, be noted that the banks are direct beneficiaries of the latest stimulus and hopes of some more adds to the upbeat trading sentiment.
Read: Wall Street Close: Bulls clinch onto bullish territory by the tops of their hooves
Recently, Moderna came with the news, per CNBC, suggesting that their vaccine produced a ‘robust’ immune response during the third trial. The update follows other positive announcements that have crossed wires off-late suggesting that the global pharmacy companies are near to a cure to the pandemic.
Talking about the tensed relations among the world’s top two economies, namely the US and China, the South China Sea has recently been in limelight after US Secretary of State Mike Pompeo defied Beijing’s claim over the region and the dragon nation responded accordingly. In his latest press conference, US President Donald Trump said to sign the previously approved bill by the House to levy sanctions on China over the Hong Kong security bill.
Concerning the data, American inflation numbers came in mixed after upbeat marks of the National Australia Bank’s Business Confidence and Business Conditions. Further, China’s trade data also suggests that the dragon nation is gradually overcoming the virus-led economic halt.
Moving on, global traders will keep eyes on the pandemic updates, Sino-American tension for fresh impulse. Additionally, Australia’s Westpac Consumer Confidence and HIA New Home Sales, for July and May respectively, will also be followed for fresh impetus. While the economics and vaccine news might help the quote to keep 0.7000 on the bulls’ radars, other factors concerning China could question further upside.
Technical analysis
Unless witnessing a daily close beneath the monthly support line, currently around 0.6925, buyers are less likely to forget attacking 0.7000 mark.
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